Oil prices have risen after several of the world’s largest exporters announced unexpected production cuts.
Brent crude oil is now trading above $84 per barrel, having risen by more than 5%.
Economists have warned that higher oil prices may make it more difficult to reduce the cost of living.
However, the RAC motoring association has stated that it does not expect petrol prices to rise unless the higher oil price is sustained for several days.
Brent crude prices rose after Saudi Arabia, Iraq, and several Gulf states announced on Sunday that they would reduce output by more than a million barrels per day.
Furthermore, Russia announced that it will extend its cut of 500,000 barrels per day until the end of the year.
Energy behemoths BP and Shell saw their share prices rise by more than 4% on Monday.
Oil prices soared when Russia invaded Ukraine, but have since returned to pre-conflict levels.
However, the US has urged producers to increase output in order to lower energy prices. “We don’t think cuts are advisable at this time given market uncertainty,” a spokesperson for the US National Security Council said.
High energy and fuel prices have contributed to rising inflation, putting pressure on the finances of many households.
KPMG’s chief economist, Yael Selfin, warned that the rise in oil prices could complicate efforts to reduce inflation.
She did, however, say that rising oil prices will not necessarily result in higher household energy bills.
“The energy price cap that households benefit from has already been determined based on previous market expectations,” she explained. “Plus, when it comes to household energy use, it’s more gas-heavy than oil-heavy.”
There have also been concerns that rising fuel prices will have an impact on transportation costs.